super camarones - power prawns

Founders

Ms. Unyarat Pornprakit

Ms. Nattaporn Santhanawit

Ms. Janejira Champaiboon

Mr. Nattakorn Thamhatai

Mr. Pipat Srimattayakul

Ms. Noparath Ruammek

Advisor

Mr. Bill Randall

Power Prawns Producer Co., Ltd.

Business Plan

MIM Program

Thammasat University

Bangkok, Thailand

Thailand Prawn farming status

• Prawn farming is 3rd most important agriculture of Thailand,

after Rice and Para Rubber.

• Though Thailand is one of the world’s leading prawn

exporters with 10% market share, still 80% of farmers are still

using very traditional farming method.

• More than 98% Thailand’s prawns exported

are brine (marine) prawns while Freshwater

prawns account only 2%, due to poor

productivity problem. Power Prawns Producer

Company will solve this problem.

• Standard & Poor’s Risk Indicator 2007:

Thailand’s rating is BBB+ (Medium Class, satisfactory at the

moment)

Power Prawns uses proprietary technology to

breed 100% all male prawns that are

• lager size & higher price

• antibiotic residue free

• consistently supplied

Thai Measurement Unit

• Currency : 1 USD = 36 THB

• Area : 1 Acre = 2.5 Rai

TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY................................................................... 1

1.1 The Opportunity ..................................................................... 1

1.2 Power Prawns – The Solution ....................................................... 1

1.3 The Business Model, Operations and Marketing ................................. 2

1.4 Management Team Profile .......................................................... 2

1.5 The Investment Opportunity ....................................................... 3

2.0 THE COMPANY ........................................................................... 3

2.1 Background ........................................................................... 3

2.2 Vision and Mission .................................................................... 4

2.3 Key Accomplishments and Current Status ....................................... 4

2.4 Ownership Structure ................................................................ 5

3.0 THE PEOPLE .............................................................................. 5

3.1 Management Team ................................................................... 5

3.2 Advisory Board ....................................................................... 6

4.0 THE PRODUCT ........................................................................... 7

4.1 Background ........................................................................... 7

4.2 The Problems in the Prawn Industry: ............................................. 7

4.3 The Solution – PPP’s Freshwater Prawns ......................................... 8

5.0 INDUSTRY AND COMPETITION ........................................................ 11

5.1 Industry .............................................................................. 11

5.2 Competition ........................................................................ 11

6.0 MARKETING AND SALES STRATEGY .................................................. 13

6.1 Marketing Objectives .............................................................. 13

6.2 Market size and segmentations .................................................. 13

7.0 OPERATION STRATEGY ................................................................ 14

7.1 Supply Side Operation ............................................................. 15

7.2 Customer Interface Operations .................................................. 16

7.2.1 Logistics: ......................................................................................16

7.2.2 Inventory Management: ...................................................................17

7.3 Research and Development ...................................................... 17

8.0 RISK MANAGEMENT .................................................................... 17

9.0 FINANCIAL HIGHLIGHTS ............................................................... 18

9.1 Financial Overview ................................................................ 18

9.2 Sensitivity Analysis................................................................. 19

9.3 Breakeven Analysis ................................................................ 19

9.4 Exit Strategy ........................................................................ 19

10.0 FUNDS REQUIRED AND OFFER ....................................................... 20

1.0 EXECUTIVE SUMMARY

1.1 The Opportunity

Widely known for its tasty texture and large size, Freshwater prawn is one of the most sought

after seafood. More than 400,000 tons1 of Freshwater prawns, worth US$ 6.9 billion2, are

consumed annually. There has been consistent excess demand on prawn, and it is forecast

to grow dramatically in the upcoming years. Growth over the decade has been steady at a

healthy rate 27.4%3.

However, Thailand, formerly the world’s leading prawn producer, is unable to satisfy this

demand due to poor productivity problems. Thailand has incurred a US$119 million annual

opportunity costs during last 3 years, as its production fell 40% from 32,500 tons in 2003 to

19,700 tons in 20064. Poor quality supply of baby prawns (broodstock) and poor farming

practice resulted in lower yields. Typical broodstock results in large female populations

(smaller in size, lower price), while poor broodstock can additionally result in weaker

hatchlings often requiring banned antibiotics. These inconsistencies create the need for

continuous and frequent partial harvesting over a 9 months period which is very

operationally inefficient. During these years farmers switched to growing the smaller White

shrimp, which at the time was unaffected by viruses, could full harvest every 3 months,

offering a steadier revenue stream. Although a smaller upside, it provided steady and more

reliable income. The farmers switch to White shrimp has created a huge gap in the supply of

Freshwater prawns, both domestically and internationally.

1.2 Power Prawns – The Solution

With the proven success in Freshwater prawn broodstock development, Power Prawns

Producer Company (PPP) was formed to commercialize and implement its cutting edge

technology to improve Freshwater prawn farming efficiency. Through a surgical transsexual

1 Fisheries Global Information System: Macrobrachium Rosenbergji 2 Rodale Institution, www.rodaleinstitute.com 3 Aquaculture Research, 2005, Michale Bernard New, European Aqualculture Society

breeding technique perfected by scientists at Kasetsart, Thailand’s leading agricultural

university, PPP has grown 500 “neo-female” prawns (baby males grown to be females) which

can be naturally mated. Due to the chromosome parings when mated, these neo-female

prawns produce 100% male, virus resistant and pathogen free broodstock offspring. This

technique is not GMO. It is merely a cross breeding technology producing normal prawns.

All male harvests are 3x larger in size, capture a 100% higher market price, grow faster (4

months vs. 9 months), and require harvesting in a single day. An average farmer using

Power Prawn’s broodstock will gain 134% additional yield compared to typical Freshwater

prawn farming per year.

1.3 The Business Model, Operations and Marketing

PPP will leverage its core competency on developed broodstock and fulfill the untapped

Freshwater prawn demand under a “Multi-Party contract farming” model, which essentially

equates “outsourcing” and renting existing farm and labor to grow Freshwater prawn using

its unique broodstock. PPP has advantageous position in requiring minimum investment in

assets as we will leverage the existing excess capacity of underused White shrimp farms and

their existing staff. To date, PPP has successfully recruited 13 independent shrimp farmers

and 1 shrimp farmer co-operative to raise Power Prawns. Marketing is also very efficient as

there is existing unmet demand by exporters, and the fresh seafood exporters are easily

identified and limited in number. PPP will make money by exclusively buying back the crop at

predetermined price and resell this crop to seafood exporters at margins of 40%. To date,

two major exporters have issued letters of intent to purchase (LOI) securing demand for

3,400 tons or US$ 23.8 million annually from PPP.

1.4 Management Team Profile

Power Prawn will also make a mark by applying professional management to what is typically

an unsophisticated industry. In addition to a diversified management team with over 40

4 Thai Shrimp Association

(US $'000) 2008 2009 2010 2011 2012Revenue 5,185 13,378 25,480 39,102 52,942Cost of Goods Sold (3,253) (8,172) (15,445) (23,631) (31,939) Gross Margin 1,932 5,205 10,035 15,471 21,003

37% 39% 39% 40% 40%Operating Expenses (868) (1,540) (2,123) (2,691) (3,357) EBITDA 1,270 3,881 8,149 12,935 17,801Earning After Tax 684 2,566 5,539 8,946 12,352

13% 19% 22% 23% 23%Free Cash Flow 933 3,107 6,441 10,070 13,363

Summary Financial ProjectionJanuary 2008- December 2012

years combined experience in supply chain, marketing, and engineering, the following key

players are also key to PPP’s opportunity:

Ms. Noparath Ruammek, CEO and Director of Operation, 10 years experience in prawn

industry with 5 years as an export manager for Andaman Sea Shrimp Farm. Her family owns

a number of prawn farms.

Dr. Wikrom Rangsint Director of R&D, 10 years experience in prawn industry in Thailand and

additional 5 years research and development in prawn breeding and sex conversion. He has

developed our core technology to improve broodstock quality.

1.5 The Investment Opportunity

Power Prawns Producer Co. founders have invested US$300,000 to date in developing the

marketing and final stage of Power Prawns Solution. PPP is seeking for US$ 1.1 million in

exchange for a 20% stake, and 50% investor’s annualized return, to establish its first

commercial hatchery located in Suphanburi province, Thailand.

2.0 THE COMPANY

2.1 Background

Freshwater prawns are one of the most sought after seafoods in worldwide markets because

of their plump meat and large size. Thailand, even as a leading producer, cannot meet the

demand because of the disease sensitive species, and female dominated offspring which

tend to be smaller and less valuable. Ms. Noparath Ruammek, CEO of Power Prawns

Producer Co. (PPP) has been in the prawn farming industry for more than 10 years, when she

and her fellow graduate students at Thammasat University were introduced to Mr. Wikrom

Rungsin and Dr. Prapansak Srisapoome, from the Faculty of Fisheries, Kasetsart University5.

The two have developed a cutting edge technology to improve broodstock quality and,

therefore, increasing prawn farming productivity. With Ms. Ruammek’s experience and

leverage on her current prawn farms, and the huge opportunity the technology presents in

the lucrative prawn market, the group has formed a new venture partnership. PPP is being

formed to leverage its competency on broodstock development through a contract farming

concept. PPP is now seeking full investment to quickly capitalize on this opportunity.

2.2 Vision and Mission

PPP will integrate and dominate the prawn farming industry to become a world

leading Freshwater prawn supplier through cutting edge broodstock management and

prawn farming technologies. We are dedicated to superior yields and continuous

supply of quality Freshwater prawns through use of modern technology and farming

practices. 2.3 Key Accomplishments and Current Status

Over the last year PPP has made significant progress to bring the PPP’s business model to

market. Five years of research and proof of concept has been committed to the technology.

In addition, key milestones in commercialization have included:

Created 500 virus free Neo-female prawns in nursery ready to give birth to 8 million baby

prawns by November 2007 which is sufficient to produce 3x our first year target revenue.

Signed commercial contract farming agreements with:

Samutsakhon province, Tachin River Plain Shrimp Farmers Co-Operative: access to more

than 10,000 acres and 350 GAP (Good Aquaculture Practice) certified shrimp farmers

(see appendix IA).

Nakornpathom province, 13 GAP certified independent farmers in Bang Len district,

equivalent 20 acres of prawn farming area (see appendix IB).

5 Kasetsart University is the leading university in Thailand specialize in agricultural research

Chachoengsao province, Letter of intent with Bangpakong Shrimp Farmers Co-Operative,

for 6.4 acres controlled farm.

Established a lease contract, leveraging Ms. Ruammek’s existing 4 acres indoor facilities for

hatchery and 28 acres for nursery.

Established 2 letters of intent with key customers for purchase agreements from two major

shrimp exporters consuming 100% of our output for the first 3 years. (see appendix II)

Completed field research and market validation with more than 40 White shrimp farmers

and industry leaders. (see appendix III)

2.4 Ownership Structure

PPP projects to generate the first revenue in April

2008, 10 months after our funding in June 2007. The

first 500 tons shipment has been pre-booked by

Wales & Co Universe Ltd. Additional capital of

US$1,100,000 is required, while the founder-

shareholders have contributed US$300,000 in cash

and non-billed pre- operating work. 3.0 THE PEOPLE

3.1 Management Team

A large part of the Prawn farming sector has traditionally been unsophisticated and a very

segmented industry. PPP plans to bring a new dimension of professional management,

supply chain, technology, and marketing to create a strategic competitive advantage. We

have put together key players to dominate the research and technical side through our

partnership with the leading scientists from the sector.

Name Ownership

Ms. Noparath Ruammek 18%

Ms. Nattaporn Santhanawit 10%

Mr. Nattakorn Thamhatai 10%

Mr. Pipat Srimattayakul 10%

Ms. Janejira Champaiboon 10%

Ms. Unyarat Pornprakit 10%

Mr. Wikrom Rangsint 16%

Dr. Prapansak Srisapoome 16%

Figure1: Current Ownership Structure

Name / Position Degree Experience Ms. Noparath Ruammek CEO and Director of Operation

• MSc in Marketing • BBA (International

Business)

• 5 years Export Manager, Thai-Myanmar Shrimp Farm • 2 years Black Tiger Shrimp Farming • 5 years Project Coordinator, Andaman Deep Sea Port in

Myanmar Mr. Pipat Sirimattayakul Plant & Farming Director

• MSc in Marketing • B. Eng (Telecom)

• 3.5 years RF Engineer, MYCOM International • 1 year Business Development Executive, TRUE MOVE

Ms. Nattaporn Santhanawit Business Development Director 1

• MSc in Marketing • BA in Economics

• 4 years marketing and sales with multinational companies and state enterprises.

• 1 year managing rep office for an international airlines Mr. Nattakorn Thamhatai Business Development Director 2

• MSc in Marketing • BBA (Marketing)

• 3 years Key Account Executive, Thai SAMSUNG Electronics • 3 years Group Accounts Manager, Philips Electronics

Ms. Unyarat Pornprakit Director of Accounting & Finance

• MSc in Marketing • BBA (Accounting)

• 2 years Accounting and Audit, Price Waterhouse Coopers • 4 years General Manager, “Jubilee”, largest karat diamond

retailer in Thailand

Ms. Janejira Champaiboon Supply Chain Management Director

• MSc in Marketing • B. Eng (Electrical)

• 1 year in New Product Development, EFFEM Thailand Inc. • 4 years in Marketing assistant at EFFEM Thailand Inc.

Dr. Wikrom Rangsint Director of R&D

• MSc in Zoology, Kasetsart University

• 10 years experiences in Prawn Industry in Thailand 5 years research and development in prawn sex conversion (Neo-female Project)

3.2 Advisory Board

Dr. Chalor Limsuwan, Most noted professor and researcher in the Thai shrimp industry.

More than 25 years experience in the shrimp industry, having published more than 250

related articles.

Dr. Niti Chuchird, Thailand’s leading shrimp virus and shrimp breeding improvement

expert. His strong technical background will help PPP in R&D activities.

Mr. Somsak Maneetatyasai, President of Thai Shrimp Association. His 20 years of

experience in aquaculture export, together with fruitful connections make him a key

opinion leader. His reputation will endorse PPP.

Board of Directors

Ms.Noparath Ruammek CEO

Mr. Pipat SirimattyakulPlant & Farming Director

Ms. Nattaporn SanthanawitMr.Nattakorn Thamhatai

Business Development Director 1 & 2

Ms.Unyarat PornprakitAccounting & Finance Director

Ms. Janejira Champaiboon Supply Chain Management Director

Dr. Wikrom Rangsint R & D Director

Advisory Board

Figure 2: Power Prawns Management Team

“The problem is not the demand, but QUALIFIED supply”

Mr. Poj Aramwattananont

President Wales&Co Universe Limited

Thai Frozen Foods Association

Size Difference Male VS Female

US$ 7 per KG

US$ 2 per KG

4.0 THE PRODUCT

4.1 Background

There has been a consistent excess demand for

Freshwater prawns. However, Thailand’s Freshwater prawn production has fallen 40%, from

32,500 tons in 2003 to 19,700 tons in 2006. Farmers have typically failed in the

Freshwater segment because of poor yields from female dominated ponds. Farmers have

shifted to grow alternative shrimp products which grow faster while others have gone out of

business.

4.2 The Problems in the Prawn Industry:

The Customer’s Problem (Demand side):

There is currently a supply shortage for

Freshwater prawns, even for domestic markets. Mr. Poj Aramwattanaont, President of

Wales & Co Universe Ltd., Thailand largest shrimp exporter and the President of Thai Frozen

Food Association states, “The problem is not the demand, but consistent qualified supply

offered with antibiotic residue tolerance which is required by buying countries. For any

exporter, having another product offering, other than White Shrimp and processed food, is a

huge advantage.”

The Farmer’s Problems (Supply side)

1. Problems from mixed gender: male and female prawns mixed within the same pond

creates 3 main problems:

• The Gender Size Problem: 60% of all prawn offspring farmed are

female. They are naturally smaller and on average are sold at least

70% lower in price per kilogram than males.

• Slow growth of male: naturally, male prawns fight over females, causing slow growth. It

takes up to 9 months to completely harvest the crop.

• Partial harvest: Farmers first pick out the smaller female prawns at the 5th month,

leaving male prawns to continue growing with subsequent monthly harvests until the 9th

month. These interim harvests disturb sediment at the pond floor, spreading bacteria,

and killing prawns. Banned antibiotics are used to offset the problem, however, it results

in non compliance to export standards.

Having 100% males (mono-sex) is the “ideal” of all prawn producers. Prawn producing

countries have tried to come up with mono-sex manual selection methods, with no success

to date. The result – failing prawn farmers were forced to switch to raise White shrimp,

easier to grow and more frequent harvest, though the price per kilogram is 50% lower than

male Freshwater prawns and less upside.

2. Poor farming practice:

• Prawn Virus Outbreak: Farms have no quarantine policy or virus detection practices to protect

prawn breeds. In 2003, two prawn viruses, MrNV and Extra Small Virus (XSV) infected

prawns, and produced weak babies, having very low survival rates, dropping from 80% to

30% in the nursery stage.

• Virus resilience age: Typical prawn farmers seed and cultivate prawns just beyond post larva

stage. At this stage, prawns are vulnerable to virus capable of killing post larval babies.

4.3 The Solution – PPP’s Freshwater Prawns

With PPP’s core competencies, we will solve both Demand and Supply problems through

PPP’s all male high quality broodstock (Power Prawns’ Broodstock) and our farm

management systems.

1. PPP’s all male high quality broodstock (Power Prawns’ Broodstock)

Through PPP’s proprietary technology, all male high quality broodstock results in;

Figure 3: Sex Conversion Operation

• Higher yield - 134% higher weight yield or US$ 372,480 per year6 higher revenue than

standard freshwater prawn farming. Male prawns are typically 3 times larger than female

and get more than 70% higher market price.

• Faster Growth Rate – With no female distraction, male prawns grow faster and will be

ready for harvest in 3 months after ponds are seeded with broodstock.

How do we create our unique 100% male broodstock?

PPP’s Technology

Mr. Wikrom Rungsint, a member of

PPP’s founding team, perfected a

proprietary surgical procedure,

whereby the androgenic gland (male

hormone production gland), of a virus

free 45-day baby male prawn is

removed. Lacking the male hormone the fully grown prawn becomes an egg producing “Neo–

Female”. Due to the chromosome crossing of a Neo female

and normal male, the resulting offspring will be 100% Male

(see appendix VI). This is not GMO. In addition, hormone

based gender selection technologies are well accepted in

seafood, especially fish such as: rainbow trout and tilapia.

2. PPP’s farm management system

Professionally managed, PPP will outsource the prawn cultivation to our selectively

6 Base on 8-acre production

Figure 4: A comparison of Freshwate prawn farmer’s average annual revenue yield using “Power Prawns vs. Standard broodstock”

2

1

contracted farmers who will be strictly controlled according to PPP’s standard. Monitoring all

critical aspects of the cultivation

process will ensure both maximum

utilization of the broodstock's

unique characteristics and

minimizing production variables.

Comparing to typical broodstock,

Power Prawns has advantages in

many aspects as shown in Figure 4.

How PPP can make money?

PPP’s customers are seafood exporters. PPP’s broodstock production (breeding, hatching, and

nursing) is to be done in-house. PPP’s cultivation process will be outsourced to selectively existing

White shrimp farmers. This outsource process, so-called contract farming, has three steps:

PPP recruits prawn farmers to enter our contract farming program – as PPP’s outsourcing.

Power Prawns’ all male broodstock will be supplied by PPP and the contractors will raise them

under PPP’s close supervision and developed guidelines.

When the prawn crop is ready to be harvested, PPP will exclusively acquire the crop at

predetermined White shrimp’s price. The converted White shrimp farmers have eagerly engaged

in the program where we pay them 20% higher price/kg than they normally would have made

with their own White shrimp crop. PPP’s advanced expenses (feed and broodstock cost) will be

Power Prawns

(all male) Typical Freshwater Prawn

Male Female

Output Yield (KG) 78,000

21,360 12,000

33,340

Market Price (USD) $ 7 $ 7 $ 2

Revenue (USD) $ 546,000

$ 149,380 $ 24,000

$ 173,380

Figure 5: PPP’s Business Model

Contracted Farmers Exporters

• 40% more revenue• Zero risk

• Constant Supply• Residue Prawn• 0% Antibiotic

PPP provides to contracted farmers

2

3

Sells to exportersat a predetermined price

(40% margin)

Outsource Prawn Cultivation to Farmers

PPP acquires all male freshwater prawns at predetermined price

1

• PPP’s broodstock• Financial support• Technical support

Sell to exporters at a predetermined price

• Constant Supply • Antibiotic

Residual Free

3

Source: Rohdale Institute

Freshwater Prawn Consumption by Country

In billion USD

$3.8, 54%

$1.7, 24%

$1.5, 22%

EU US Others

redeemed by deduction from sales amount. Through our system, plus additional yields, contract

farmers that converted to Power Prawns will make 40% more revenue per year by partnering with

PPP than their existing White shrimp operations.

PPP will consolidate the prawns from its various contractors, and sell the accumulated

crop to exporters at standard Freshwater prawn’s price which is 70% higher than the acquired

price paid to farmers.

5.0 INDUSTRY AND COMPETITION

5.1 Industry7

In 2006, world’s prawn production (farming) reached US$36 billion 8 . The market is

categorized by prawn species. Major categories are Black Tiger shrimp, White shrimp and

Freshwater prawn. Freshwater prawns global market consumption is worth US$ 7 billion,

20% of total shrimp farming value.

Major consumption of Freshwater

prawns comes from European

Union and the United States, and

keeps rising every year at 27.4%9

per annum. 83%10 of these countries’ consumption is imported. Thailand used to be the

world’s major supplier of Freshwater prawns with export volume of 11,300 tons in 2003

until 2006 when only 6,900 tons were exported due to productivity problems. Currently India

is the world largest exporter of Freshwater prawns, at 42,000 tons to the world market last

year.

5.2 Competition

7 National Food Institution (Thailand), 2002 8 Thai Shrimp Magazine 9 Aquaculture Research, 2005, Michale Bernard New, European Aqualculture Society 10 Mississippi University Coastal Research

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q3, 2000

Q1, 2001

Q3, 2001

Q1, 2002

Q3, 2002

Q1, 2003

Q3, 2003

Q1, 2004

Q3, 2004

Q1, 2005

Q3, 2005

Q1, 2006

Q3, 2006

Q1, 2007

USD per kilogram

Price of White Shrimp

Source: Mississippi University Coastal Research

PPP is competing with the remaining Freshwater prawn

producers which are fragmented independent farmers.

Traditional prawn farmers are typically unsophisticated,

they normally raise the prawns in natural ponds just after

broodstock has passed the post larva stage. At this age

they are very vulnerable to virus infection, resulting in an average of 60% compared to 90%

survival rate of Power Prawns. The only method known for cultivating all male prawns in farming

is manual selection which is very labour intensive and time consuming. This practice is very rare,

found with some farmers in India and Thailand, and this method itself is only 70% accurate (i.e.

many females still remain).

Trends

Government Regulation: The Thai Government has prohibited brine (saltwater) based

shrimping (i.e. White & Black Tiger shrimps) in freshwater areas11, as the drain from salt

ponds deteriorates soil and poses a threat to other agricultural sectors. This creates a

huge opportunity of more than 10,000 ponds in this area that will either be closed or

made available for PPP for favourable contract farming terms. To abide by the law, these

farmers are forced to raise White shrimps in brackish water (less than 5 parts per

thousand of salt vs. water) which leads to lower yield, (10 tons yield per acre in standard

salt water vs. 2.5 ton per acre in brackish water).

Eroding price of White shrimps: Farmers

who raise White shrimps are facing price

erosion. White shrimp has become the

main export prawn product for China,

Vietnam, Ecuador and Thailand. Supply of

White shrimps has been growing annually.

11 Mr. Somsak Maneetatyasai, President of Thai Shrimp Association (refer to Article 9)

Prawn Farming in Thailand: Harvesting

6.0 MARKETING AND SALES STRATEGY

6.1 Marketing Objectives

PPP’s demand is

secured with

letters of intent

from our exporters

at 3,400 tons per

year. With the current 13 contracted farmers, and our production capability of broodstock,

PPP’s operational target is established at 747 tons in year 1. By year 3, we will expand to 59

contracted farmers to fulfill the demand from Wales & Co Universe Limited and Thai Royal

Frozen Foods Co., Ltd.

6.2 Market size and segmentations

Segmentation: Freshwater prawns market in Thailand Y2006 was 19,700 tons worth

US$ 114 billion which can be segmented into 2 key areas

• Domestic market: This is 65% of total market. This market is very fragmented where most

prawns are sold alive directly to fresh markets scattered throughout the country.

• Export market: This is

35% of total market.

There are about 100

exporters in Thailand.

Prawn exported market

is dominated by the top 5 players which are Wales & Co Universe Limited, Charoen

Pokphand Foods Public Co., Ltd. (CPF), Thai Union Frozen, Union Frozen Food and

Thai Royal Frozen. Exporters typically buy fresh prawns kept in ice containers from the

farmer for further processing.

PPP's Marketing Objectives Year 2008 2009 2010 2011 2012

Volume Sold (Tons) 747 1,835 3,328 4,864 6,272

Reveune ('000 USD) $ 5,185 $ 13,378 $ 25,480 $ 39,102 $ 52,942

Sellling Price per ton (USD) $ 6,944 $ 7,292 $ 7,656 $ 8,039 $ 8,441

Number of farmers required 18 37 59 80 98 Note: The capacity of our contract with Tachin River Plain Shrimp Farmers Co-Operative alone is more than sufficient for the targeted revenue through year 5.

Source: Custom Department of Thailand

Thailand Production Value 2006 (million USD)

Export volumeDomestic

US$ 40 , (35%)

US$ 74 , (65%)

Target Market

The initial target market of PPP is the export segment due to the following reasons:

1. Customers are clustered, easily identified and require minimum logistics.

2. Exporters are systematic in their operations, using forward contracts to lock in pricing

– beneficial to all parties involved.

2 out of top 5 exporters issued the letter of intent to purchase from PPP. The LOI PPP

received from Wales & Co Universe Limited and Thai Royal Frozen worth 3,400 tons per

annum or US$ 23.8 million.

Growth and Marketing beyond Yr 2

Thailand has faced the supply shrinkage since 2003, being replaced by India as the new

leading exporter. PPP will extend its marketing vertically up the channel, communicating

directly with US and European importers, as well as large channel buyers

(Chain restaurants and Seafood Distributors). We will reach them trough key

food shows and trade meetings such as the Boston Seafood Show or

European Seafood Exposition.

Other upside potential

The Current operation model is based on using only 35% capacity of the business

facilities. Significant increases of revenue can be achieved with no additional financial

resources. PPP can also look at the potential to expand production into neighboring

countries using similar contract farming practices that have tariff and tax advantages

such as Vietnam.

7.0 OPERATION STRATEGY

According to the business model, PPP will produce all male prawn broodstock and

outsource the cultivation to contracted farmers. The harvested prawns will then be sold

to exporters. The operation is divided into 2 parts.

Pre-existing facility in Suphanburi

7.1 Supply Side Operation

7.1.1. Broodstock Production: The core element of the PPP’s business model is the raising of

quality broodstock for distribution to our contracted farms. Simply put, we mate and hatch all

male offspring from our Neo–Females, and then all hatchlings are entered into a separate

nursery pond for 25 days. The male broodstock (baby prawns) will be sent to our contracted

farms to be introduced to the ponds and raised.

Hatching Facility: Power Prawns Producer will lease a pre – existing facility in Suphanburi

(120 km from BKK) including 4 acres of hatchling ponds through our CEO’s existing prawn

business at a rate of US$ 1,390 per month. 4 acres will be

used to perform the aquaculture surgical procedures,

breeding, hatching, and administration of Power Prawns.

The current layout and facilities complies with GAP (Good

Agriculture Practice) and CoC (Code of Conduct). US$ 500,000 has been allocated for basic

technology improvements for a fully self contained functional facility. The location is

extremely well positioned in the heart of key prawn farming areas. (see appendix V)

Broodstock Production Staff: The estimated number of staff is based on production

capacity which will be increased from year to year. For Year 1, we will need approximately 21

people as shown in table below.

Our production and operation divisions

demand the most staffing being responsible

for the core hatcheries activities of Power

Prawns.

7.1.2. Contract Farming: PPP will outsource the prawn cultivation to our contracted farms that

qualify the GAP and CoC standards, where labor, facilities and supplies are 100% outsourced,

requiring only feed supply to be provided by PPP. PPP will target White shrimp farmers in central

region of Thailand since they are facing problems with low productivity and the regulation that

Number of Employees

Year 2008

Year 2009

Year 2010

Year 2011

Year 2012

Hatchery & Nursery Staff 5 10 16 21 25

Surgeons 1 2 2 3 3

Lab Staff 3 4 4 5 5

QA staff 3 5 8 11 13

MGMT & Admin 9 10 10 12 12

Total 21 31 40 52 58

Figure 5: Production and Operation Staff

Contracted Farmers

• Farming all male freshwater prawns under PPP’s supervision

Exporters

• Constant Supply• Residue Prawn• 0% Antibiotic

2

3Zero Inventory

PPP acquires all male freshwater prawns at a predetermined price

Outsource Prawn Cultivation to Farmers1

• Operation procedure• Broodstock production• Hatching and Nursing

3 months 1 month

Outsource transportation to deliver all male freshwater prawnsto exporters

Figure 6: PPP’s Operation Flow

prohibits brackish shrimp farming in the area. PPP will acquire the feed from the suppliers who

have been working closely with our CEO over the years. This provides the highest leverage on our

core competency. The ponds are seeded with our hatchlings raised at the contracted farms for

another 3 months before being harvested and delivered back to us under pre–contracted rates.

Farm Location: The location of the contracted farms will be divided into 3 geographical

areas in the central part of Thailand: Bang Len, Tha Chin (Tha Chin Cooperative consists

of 350 farmers) and Bangpakong (Bangpakong Cooperative consists of over 700

farmers). This separation helps diversify any regional environmental risks. During the 3-

month period, our farm staff will maintain supervisory relationships with the farmers to

ensure that the productivity and proper farming practices are taking place.

Monitoring System: PPP will employ a Farm Monitoring Software (see appendix IV)

developed by Shrimp Network Co., Ltd. for contract farming practices. Through this

software, PPP will be able to control feed supply to our contracted farmers, estimate

prawn volume in each farmer’s pond and forecast our Freshwater prawns supply to

exporters. Our farming staff will visit the contracted farms weekly to monitor the

condition of the farms as well as give support to farmers if needed.

7.2 Customer Interface Operations

7.2.1 Logistics: PPP will deliver all male prawn broodstock from the hatchery to the

contracted farms, and then deliver the harvested prawns to the exporters using an

outsourced transportation company. For international delivery, the exporters will be

responsible for the transportation management as commonly practiced in the industry.

7.2.2 Inventory Management: PPP will not hold any inventory as the all male prawns will

be delivered directly from the contracted farms to the exporters.

7.3 Research and Development

Broodstock development is truly an ongoing and endless R&D effort. Together with all the

key research professors from the Faculty of Fisheries, Kasetsart University, both our

shareholders and our advisors in the Advisory Board, we will continue working on Research

and Development on our products and farming practices. Data collected from our farming

management software will be used to support future R&D.

8.0 RISK MANAGEMENT

8.1 Contracted Farms’ Harvest Failures: Potentially caused by:

1. Natural disaster: PPP diversifies disaster risk by having 3 locations in central freshwater

areas. To date, PPP has already established legal contracts with 350 farmers in 2

provinces, Nakhonphatom and Samutsakorn.

2. Poor farming practice: farmers will be closely monitored by PPP in subsequent crops.

Losses will be credited to PPP against the second harvest revenues. PPP is able to

withstand failure up to 44% of total volume production.

3. Virus outbreak: Power Prawns is introducing PCR virus scanning and prevention methods.

We will breed and raise prawn broodstock in a controlled environment for 45 days until

post larva stage, where freshwater prawns are not susceptible to deadly virus. Even with

virus infection present, prawns can still yield reasonable return. Prawn’s viruses are

harmless to human, and infected prawns are commonly exported and sold in U.S. 8.2 New Competitors: PPP May see new competitors with Male Broodstock Production

capabilities. However, demand for Freshwater prawns in both domestic and international

markets is significant and growing at 27.4% annually. This is sufficient to accommodate new

players over the next 5 years.

8.3 Intellectual Property

PPP has erected barriers to protect the company from competitors. First, we have complete

control over the surgical procedure technology and the most critical element of the farming,

the broodstock. No outsiders have ever been successful in replicating the surgery. Any new

comer will take several years to build a sufficient stock for mating. We will control 100% of

our broodstock for our own use. Second, we are in the process with our legal advisors,

Rouse & Co, to develop Patent on the surgical process, under company’s name.

8.4 Relationships with key industry figures: We have partnered with the key influential

players of research and commerce in the Thai prawn industry. The strength of relationship

with the industry will be a very strong barrier to competitors.

9.0 FINANCIAL HIGHLIGHTS

9.1 Financial Overview

Summary financial projections, cash flow projections, supplementary financial information

and selected balance sheets are detailed below. A complete five-year spreadsheet and

assumptions used in compiling the financial projections can be found in Appendix VII.

(US $'000) 2008 2009 2010 2011 2012Revenue 5,185 13,378 25,480 39,102 52,942Cost of Goods Sold (3,253) (8,172) (15,445) (23,631) (31,939) Gross Margin 1,932 5,205 10,035 15,471 21,003

37% 39% 39% 40% 40%Operating Expenses (868) (1,540) (2,123) (2,691) (3,357) EBITDA 1,270 3,881 8,149 12,935 17,801Earning After Tax 684 2,566 5,539 8,946 12,352

13% 19% 22% 23% 23%Free Cash Flow 933 3,107 6,441 10,070 13,363

Summary Financial ProjectionJanuary 2008- December 2012

13 MonthsBreakeven points (USD'000) 2,222 Breakeven points (tons) 320

Breakeven AnalysisCash from Operations

Projected 5th FY Enterprise Value (USD $'000)

Projected 5th FY Net Income 17,801

Valuation Multiple (P/E ratio)* 3

Sub total 53,402

Adjustment: Cash 34,434

Projected 5th FY Enterprise Value

Exit Strategy

87,836

* Based on Stock Exch. Of Thailand P/E of 7 for agricultural industry avg. 2007 adjusted to 3 for risk premium

9.2 Sensitivity Analysis

Although PPP deals in agricultural business where price fluctuation is its nature, PPP's

business model mitigates this risk by using predetermined price on both customer’s end

and farmer’s end. This practice is already the industry's norms. However, the sensitivity

analysis below indicates that PPP's financial projection is still robust against the increase

and decrease of our revenue's components. The business can tolerate the following

situations and maintain a positive NPV or NPV 0 at 45% discount.

9.3 Breakeven Analysis

PPP will breakeven on cash from operations

in 13 months (August 2008) with sales of

US$ 2,222,000 at 320 tons of prawns.

9.4 Exit Strategy

The most likely harvest strategies will be an Initial Public Offering (IPO) or sale to one of the

larger domestic agricultural conglomerates. The projected enterprise value for the 5th year is

US$ 87.84 million. As this business is also very cash rich with little reinvestment in

infrastructure, a favorable dividend policy could be set if it is in the interest of our investor.

Conditions Increase Decrease NPV

Sales Volume 78% 0

Cost of Goods Sold 46% 0

Selling Price 28% 0

Sensitivity Analysis

10.0 FUNDS REQUIRED AND OFFER

PPP requires US$1.1 million from outside investors to capitalize the business to meet the

needs of the plan. The founders have contributed US$ 300,000 in cash and non-cash

activities. Investors will receive 20% of common stock and 2 of 5 board seats, which would

result in 50% annualized return. We have used this as a benchmark but are also open to

alternative preferred shareholding structures to be negotiated. Uses of funds are illustrated

below. If all financial projections are met, the project’s IRR will be 181% with a NPV of

US$ 11.37 million based on projected free cash flow.

Uses of Fund Amount % of Funds

600,000 55%

320,000 29%

180,000 16%

Uses of Fund

Hatchery and Nursery facility and equipment

Marketing and Selling Expenses

Working Capital and Operating Expenses

Total 1,100,000 100%

APPENDICES

Appendix I: Contract Farming Agreements

Appendix II: LOI of exporters

Appendix III: Field Research

Appendix IV: Shrimp Network Software

Appendix V: Farm Standards

Appendix VI: Chromosome Crossing Map

Appendix VII: Financial Statements

Appendix VIII: Gallery

Appendix I: Contract Farming Agreement

A: Contract signed with Co-op B: Contract signed with 13 individual farms

Translation of Contract’s Highlights Farmers must follow the instruction that PPP sets for pond and environment control. • Both parties are responsible for advanced payments and PPP will deduct these costs from final revenue. • Farmers will be paid based on final output: If the output meets the target, farmers will get an additional 20% premium on top of the agreed price If the output falls below the target, farmers will be paid for the average amount produced in the past six months at the agreed price • Farmers are bound to keep all the process detail confidential within the enforced period.

Appendix II: Letter of Intent from Exporters: Thai Royal Frozen Food Co., Ltd. & Wales & Co Universe Limited

PPP has conducted market researches to with parties throughout the whole

supply chain

1. The hatchery & nursery farm

Respondents

• K.Nithit Palkulchai the owner of Kaset Somboon, the second largest

Freshwater prawn hatchery farm.

• K. Kasem SriKhumthai the owner of Freshwater prawn hatchery farm

in Supan Buree

Objective To understand current process of prawn hatchery

Fieldwork March, 2007 – In depth interview and filed visit

Findings

• Total process of traditional Freshwater prawn hatchery takes 19-20

until the post larva stage

• Current baby prawns are sold at the post larva stage at 0.09 THB

• The infrastructure to nurture baby prawn including

o The hatchery pond size 2.5x2.5x15 m which can produce

500,000 babies per harvest

o The reservoir pound to mix the freshwater with the brine

water size of 6x6x1.5 m

o The Ratemia pound to with the size of 0.75x0.75x0.75 m

o Closed environment with sunlight protection and controlled

temperature at 30 celcious degree is the optimum condition

to raise the babies

2. The white shrimp farmers in central area

Objective To understand current behavior, knowhow and problems

in White shrimp farming in central area

Fieldwork Feb - March, 2007 – In depth interview and filed visit

Respondents

• 10 member of Samutsongkram, Tha-Jeen cooperation

• 20 independent farmer in Nakornphatom, Banglane

• 5 members Bangpakong shrimp farming co-operative

Findings

• Raising white shrimp in brackish water result in much lower yield

which make the farming in central area less competitive comparing

raising in the brine water.

• Average yield per Rai of white shrimp in central area is 1,000 kg per

Rai at the market price of 120 bht / kg (100 shrimp / kg)

• White shrimp farming is high risk since the shrimp is sensitive to

external factors which

1. The traditional Freshwater prawn farmers

Objective To understand current behavior, knowhow and problems

in Freshwater prawn farming in central area

Fieldwork Feb - March, 2007 – In depth interview and filed visit

Respondents

• K.Narong the owner of 20 Rai of Freshwater prawn in

Nakornphatom, Banglane

Findings

• Traditional Freshwater prawn start 1st harvest in the 5th month and

then later once a month until the 9th month

• Generally female prawn size is maximum at 40 prawns / kg which

can be sold at 80 bht /kg. Male prawn is sold at 140 bht / kg.

• Freshwater prawns are transported live after harvested.

Appendix III: Market Research

Appendix IV: “Shrimp Network Software”

Appendix V: Farm Standards from Department of Fisheries

Appendix VI: Chromosome Crossing

Appendix VII: Financial Statement

Traditional MatingMating between

Male and Neo-Female

Neo-female

Financial Assumptions

Revenues: Annual increase of 5% in both selling price and buy back price. This is because we will be

using a forward rate, predetermined prices, on both ends of operation. This practice is already an

industry norm among agricultural export business in Thailand.

COGS: Hatchery/Nursery capex is relatively fixed over the 5 year period generating straight line Dep &

Amort., labor to operate the facility is similarly fixed as it only applies to the Hatchery/Nursery, while

prawn food and prawn buyback fluctuate based on production revenue.

Expenses

• Annual 5% increase in G&A expenses.

• Marketing expenses are focused in q1 each year for large international trade shows

• 3% of revenue is allocated as allowance for loss

Balance Sheet Assumptions

• We assume 25 days A/R comparing to 15 days sales in the normal business practice.

• We assume 90 days A/P, majority is feed cost. This credit term is the current rate that

Ms.Noparath, PPP’s CEO, used to get from her current supplier and PPP will use the same supplier.

A: Projected Income Statement

Unit: USD’000

1000Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Revenue - - - 296 296 444 444 741 741 741 741 741 5,185 Cost of Goods Sold

Prawns buy back - - - 122 122 183 183 305 305 305 305 305 2,135 Food & prawn baby (financed) - - - 55 55 83 83 138 138 138 138 138 965 Direct Labor 5 5 5 5 5 6 6 6 6 6 6 6 67 Depreciation 7 7 7 7 7 7 7 7 7 7 7 7 86

12 12 12 190 190 278 278 456 456 456 456 456 3,253 Gross Margin (12) (12) (12) 107 107 166 166 285 285 285 285 285 1,932

36% 36% 37% 37% 38% 38% 38% 38% 38% 37%Selling & Administration

Wages & salaries 27 27 27 27 27 27 27 27 27 27 27 27 326 Research & development 6 6 6 6 6 6 6 6 6 6 6 6 67 Advertising & promotion - - - 3 - - - - - 3 - - 6 Sales expense (Staff farm) 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 3.33 Legal fee - - - - - - - - - - - - - Transport & Delivery /Kg - - - 1 1 2 2 3 3 3 3 3 21 Rent for hatchery & nursery 2 2 2 3 3 3 4 4 6 6 6 6 49 Rent for office 1 1 1 1 1 1 1 1 1 1 1 1 17 Insurance 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 5 Allowance for loss - - - 9 9 13 13 22 22 22 22 22 156 Depreciation 2 2 2 2 2 2 2 2 2 2 2 2 19 Amortization 8 8 8 8 8 8 8 8 8 8 8 8 100 Other 8 8 8 8 8 8 8 8 8 8 8 8 100

55 55 55 69 66 71 72 82 84 87 84 84 868 Net Income Before Tax (68) (68) (68) 38 40 95 94 202 200 198 200 200 1,065

Income Tax - - - (11) (12) (28) (28) (61) (60) (59) (60) (60) (380)

Net Income (68) (68) (68) 26 28 66 66 142 140 138 140 140 684

Projected Income Statement for Year 2008

Projected Income StatementQ1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

Revenue 2,333 3,267 3,578 4,200 13,378 5,390 6,043 6,697 7,350 25,480 39,102 52,942

Cost of Goods SoldPrawns buy back 982 1,375 1,506 1,767 5,629 2,314 2,595 2,875 3,156 10,939 17,105 23,570 Food & prawn baby (financed) 414 579 634 744 2,371 910 1,020 1,130 1,241 4,301 6,286 8,106 Direct Labor 19 22 22 23 86 25 26 28 29 107 134 157 Depreciation 22 22 22 22 86 24 24 24 24 97 106 106

1,436 1,997 2,183 2,556 8,172 3,273 3,665 4,057 4,449 15,445 23,631 31,939 Gross Margin 897 1,270 1,394 1,644 5,205 2,117 2,378 2,639 2,901 10,035 15,471 21,003

38% 39% 39% 39% 39% 39% 39% 39% 39% 39% 40% 40%Selling & Administration

Wages & salaries 90 90 90 90 361 95 95 95 95 379 424 445 Research & development 42 42 42 42 167 53 53 53 53 212 272 359 Advertising & promotion (trade show 139 3 3 3 147 139 3 3 3 147 147 147 Sales expense (Staff farm expense 1 2 2 2 6 2 2 3 3 9 13 17 Legal fee 4 6 7 8 25 10 11 12 13 46 68 87 Transport & Delivery /Kg 9 13 14 16 51 20 22 24 27 93 136 176 Rent for hatchery & nursery 25 31 35 38 128 44 51 55 59 208 285 365 Rent for office 4 4 4 4 18 5 5 5 5 18 19 20 Insurance 1 1 1 1 5 1 1 1 1 5 5 5 Allowance for loss 70 98 107 126 401 162 181 201 221 764 1,173 1,588 Depreciation 7 7 7 7 29 10 10 10 10 39 49 49 Amortization 25 25 25 25 100 25 25 25 25 100 - - Other 25 25 25 25 100 25 25 25 25 100 100 100

443 347 362 388 1,540 590 483 511 538 2,123 2,691 3,357 Net Income Before Tax 454 923 1,033 1,256 3,665 1,527 1,894 2,128 2,363 7,913 12,780 17,646

Income Tax (136) (277) (310) (377) (1,100) (458) (568) (638) (709) (2,374) (3,834) (5,294)

Net Income 318 646 723 879 2,566 1,069 1,326 1,490 1,654 5,539 8,946 12,352

Year 2009 Year 2010 Year 2011 Year 2012

B: Projected Balance Sheet Unit: USD’000

1000 Year Year Year Year Year

2007* 2008 2009 2010 2011 2012Current Assets

Cash 520 1,453 4,560 11,001 21,072 34,434 Accounts Receivable - 617 1,167 2,042 2,715 3,677 Inventory

Raw materials - 220 448 686 776 1,001 Work in process - 44 53 68 79 90 Finished goods - 15 28 49 66 89

520 2,350 6,256 13,847 24,708 39,291

Non-Current AssetsFactory equipment -cost 500 500 500 555 642 642

Accumulated depreciation - (86) (172) (269) (375) (480) 500 414 328 286 267 162

Administrative equipment -cost 100 100 150 194 257 257 Accumulated depreciation - (19) (49) (88) (137) (186)

100 81 101 105 120 71 Pre-operating costs 300 300 300 300 300 300

Accumulated amortization - (100) (200) (300) (300) (300) 300 200 100 - - -

900 695 529 391 388 233

TOTAL ASSETS 1,420 3,045 6,786 14,238 25,095 39,524

Current LiabilitiesAccounts payable 20 580 1,036 1,676 2,126 2,742 Taxes payable - 380 1,100 2,374 3,834 5,294

20 960 2,136 4,049 5,960 8,036 Shareholders' Equity

New share capital 1,100 1,100 1,100 1,100 1,100 1,100 Founders' share capital 300 300 300 300 300 300 Retained Earnings - 684 3,250 8,789 17,735 30,088

1,400 2,084 4,650 10,189 19,135 31,488

1,420 3,045 6,786 14,238 25,095 39,524 * Year 2007 is PPP's pre-operation.

Year

C: Projected Statement of Cash Flow

Unit: USD’000

1000 Year

2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TotalCash Flow from Operations

Net Income - (67.62) (67.62) (67.62) 26.25 28.20 66.21 65.56 141.74 140.29 138.35 140.29 140.29 684.35 -

Non-cash items - Depreciation - CGS - 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 86.00 Depreciation - S&A - 1.61 1.61 1.61 1.61 1.61 1.61 1.61 1.61 1.61 1.61 1.61 1.61 19.33 Amortization - 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 100.00

- 17.11 17.11 17.11 17.11 17.11 17.11 17.11 17.11 17.11 17.11 17.11 17.11 205.33 -

Change in non-cash WC - Accounts receivable - - - - (123.46) (123.46) (61.73) (61.73) (123.46) (123.46) - - - (617.28) Inventory - (37.20) - (40.86) (49.42) (20.43) (25.04) (40.86) (49.42) (0.66) - - (15.62) (279.51) Payable 20.00 59.86 - - 218.04 3.75 126.21 30.88 256.42 65.68 67.63 51.79 60.13 940.39

20.00 22.66 - (40.86) 45.16 (140.13) 39.44 (71.71) 83.54 (58.44) 67.63 51.79 44.50 43.60

Total 20.00 (27.84) (50.51) (91.36) 88.52 (94.82) 122.77 10.97 242.40 98.97 223.09 209.20 201.91 933.28

Cash Flow from Investing - - - - - - - - - - - - - Pre-Operating Costs (300.00) - - - - - - - - - - - - - Factory equipment (500.00) - - - - - - - - - - - - - Administrative equipment (100.00) - - - - - - - - - - - - -

Total (900.00) - - - - - - - - - - - - -

Cash Flow from Financing - - - - - - - - - - - - - Share Capital - Investor 1,100.00 - - - - - - - - - - - - - Share Capital - Owner 300.00 - - - - - - - - - - - - - Dividends - - - - - - - - - - - - - -

Total 1,400.00 - - - - - - - - - - - - - - -

TOTAL CASH FLOW 520.00 (27.84) (50.51) (91.36) 88.52 (94.82) 122.77 10.97 242.40 98.97 223.09 209.20 201.91 933.28

Opening Cash - 520.00 492.16 441.65 350.28 438.81 343.98 466.75 477.72 720.12 819.08 1,042.17 1,251.37 520.00

Closing Cash 520.00 492.16 441.65 350.28 438.81 343.98 466.75 477.72 720.12 819.08 1,042.17 1,251.37 1,453.28 1,453.28

Projected Cash Flow for Year 2008

C: Projected Statement of Cash Flow (continue)

Unit: USD’000

Projected Cash Flow

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 TotalCash Flow from Operations

Net Income 318 646 723 879 2,566 1,069 1,326 1,490 1,654 5,539 8,946 12,352

Non-cash itemsDepreciation - CGS 22 22 22 22 86 24 24 24 24 97 106 106 Depreciation - S&A 7 7 7 7 29 10 10 10 10 39 49 49 Amortization 25 25 25 25 100 25 25 25 25 100 - -

54 54 54 54 215 59 59 59 59 236 154 154

Change in non-cash WCAccounts receivable (31) (259) (130) (130) (549) (331) (272) (136) (136) (875) (674) (961) Inventory (28) (51) (91) (80) (250) (16) (92) (92) (74) (275) (117) (259) Payable 212 66 514 383 1,175 (5) 359 845 715 1,914 1,911 2,076

154 (245) 293 173 376 (352) (6) 617 505 764 1,120 856

Total 526 455 1,070 1,106 3,157 777 1,379 2,166 2,218 6,539 10,221 13,363

Cash Flow from InvestingPre-Operating Costs - - - - - - - - - - - - Factory equipment - - - - - (55) - - - (55) (87) - Administrative equipment (50) - - - (50) (44) - - - (44) (64) -

Total (50) - - - (50) (99) - - - (99) (151) -

Cash Flow from FinancingShare Capital - Investor - - - - - - - - - - - - Share Capital - Owner - - - - - - - - - - - - Dividends - - - - - - - - - - - -

Total - - - - - - - - - - - -

TOTAL CASH FLOW 476 455 1,070 1,106 3,107 678 1,379 2,166 2,218 6,441 10,070 13,363

Opening Cash 1,453 1,929 2,384 3,454 1,453 4,560 5,238 6,618 8,784 4,560 11,001 21,072

Closing Cash 1,929 2,384 3,454 4,560 4,560 5,238 6,618 8,784 11,001 11,001 21,072 34,434

Year 2009 Year 2010 Year 2011 Year 2012

Appendix VIII: Gallery

Sell the idea to farmers Facility in Suphanburi

How to feed the prawns Harvesting Pond Preparation

Interview with the middleman Prawn’s Transportation Oxygen tank for prawns

Equipment used in farm

Female Prawns Male Prawns Hatchery Pond

Packing Broodstock Selling Broodstock Hatchery facility

Power Prawns Technology

1. 100% Male

2. Virus Resistant

3. Consistently Sized Prawns

POWER PRAWNS PRODUCER COMPANY

“PPP will integrate and dominate the prawn farming

industry to become a world leading Freshwater

prawn supplier through cutting edge broodstock

management and prawn farming technologies.

We are dedicated to superior yields and continuous

supply of quality Freshwater prawns through use of

modern technology and farming practices. ”

super camarones - power prawns

Documents

nattaporn

pipat srimattayakul

financing

understand

post larva

office insurance

cutting edge

thai shrimp